INTRODUCTION

TO CORPORATE GOVERNANCE
Generally, governance refers to a
process whereby elements in society
wield power, authority and influence
and enact policies and decisions
concerning public life and social
upliftment.
GOVERNANCE

the process of decision-making

and the process by which
decisions are implemented (or
not implemented) through the
exercise of power or authority
by leaders of the country and /
or organizations.
 CHARACTERISTICS OF GOOD
GOVERNANCE

PARTICIPATION RULE OF LAW TRANSPARENCY

Freedom of association and
expression on one hand and an
organized civil society on the
other hand.
Full protection of human Information is freely available
rights and directly accessible to those
who will be affected by such
decisions and their
enforcement.
 CHARACTERISTICS OF GOOD
GOVERNANCE

CONSENSUS EQUITY AND

RESPONSIVENESS
Good governance requires that
institutions and processes try
to
serve the needs of all
stakeholders within a
reasonable timeframe.
ORIENTED
Understanding of the
historical, cultural and social
contexts of a given society or
community.
INCLUSIVENESS
This requires all
groups, but particularly the
most vulnerable, to have
opportunities to
improve or maintain their well
being.
 CHARACTERISTICS OF GOOD
GOVERNANCE

EFFECTIVENESS
& EFFICIENCY
Meet the needs of society;
sustainable use of natural
resources and the protection of
the environment.
ACCOUNTABILITY
An organization or an
institution is accountable to
those who will be affected by
its decisions or actions.
Accountability cannot be
enforced without
transparency and the rule of
law.
 CORPORATE GOVERNANCE:
AN OVERVIEW

It basically involves balancing the

system of rules, practices and
processes by which
business corporations are directed
and controlled.
interests of
a company's many stakeholders,
such as shareholders,
management, customers,
suppliers,
financiers, government and the
community.
PURPOSE OF CORPORATE GOVERNANCE
•to facilitate effective, entrepreneurial and
prudent management that can deliver long-
term success of the company.

•to enhance shareholders' value and protect

the interests of other stakeholders by
improving corporate performance and
accountability
 OBJECTIVES OF CORPORATE
GOVERNANCE

FAIR AND
EQUITABLE INCREASE TRANSPARENCY
TREATMENT OF SELF-ASSESSMENT SHAREHOLDERS’ AND FULL
WEALTH DISCLOSURE
SHAREHOLDERS
 BASIC PRINCIPLES OF EFFECTIVE
CORPORATE GOVERNANCE

01 02 03
Transparency and Full Accountability Corporate Control
Disclosure
Is the board telling us Is the board taking Is the board doing the
what is going on? responsibility? right thing?
THANK YOU!
Prof. Rey Greña